Lax, LLC Purchased Only One Asset During the Current Year

question 12

Multiple Choice

Lax, LLC purchased only one asset during the current year (a full 12-month tax year) . Lax placed in service computer equipment (5-year property) on August 26 with a basis of $20,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation) . (Use MACRS Table 1)

• A) $2,000.
• B) $2,858.
• C) $3,000.
• D) $4,000.
• E) None of the choices are correct.

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Definitions:

Stress

A physical or emotional response to demands or pressures, which can affect mental and physical well-being.

Physical Factors

Elements of the physical environment or bodily conditions that can influence health and well-being.

Psychological Factors

Elements of human behavior that influence how individuals think, feel, and act.

Sympathetic Nervous System

Part of the autonomic nervous system that controls the body's responses to stress and regulates bodily functions such as heart rate, digestion, and respiratory rate.